EZCORP, Inc.

EZCORP reported adjusted EBITDA of $65.6 million, up 48%, and adjusted diluted EPS of $0.47, up 47%. Total revenues were $408.4 million, up 31%, and gross profit was $240.3 million, up 31%. EBITDA margin expanded 190 basis points to 16%, while merchandise margin expanded 190 basis points to 38%; U.S. merchandise margin was 40% and Latin America merchandise margin was 36%. PLO ended at a record $382 million, up 31%; U.S. PLO rose 15% to $254.5 million and Latin America PLO rose 33% to $93.7 million. For forward commentary, management said scrap margin should normalize toward the 15% to 20% range if gold stays stable, that U.S. Q4 typically continues to build while Latin America usually sees a seasonal step-down in PLO after July bonuses, and that expenses should increase sequentially as they add de novos and integrate acquisitions, including SMG. They did not provide formal next-quarter or full-year financial guidance.

Lachie Given framed the quarter as exceptionally strong and emphasized that the growth was driven mostly by core pawn rather than gold scrap. He highlighted strong lending demand across the U.S. and Latin America, major momentum in Latin America and de novo openings, and a positive view of SMG now that EZCORP owns 100% of it. His tone was confident and upbeat, while repeatedly stressing operating execution, organic growth, and the breadth of the company’s opportunities.

Tim Jugmans said adjusted EBITDA rose 48% to $65.6 million and margin expanded 190 basis points to 16%, helped by merchandise margin expansion, expense discipline, and higher scrap gross profit. He noted revenue of $408.4 million and gross profit of $240.3 million, with consolidated net inventory at $312.5 million, cash at $311 million, and the first debt maturity not until December 2029 on the $230 million convertible notes, followed by the $300 million senior notes in April 2032. He also said the company repurchased about 132,000 Class A shares for $4 million under the $50 million authorization, with $8 million used to date, and reiterated capital allocation priorities of PLO growth, de novos, disciplined M&A, and opportunistic shareholder returns.

Analysts pressed management on whether higher gold prices were inflating loan sizes and distorting PLO growth. Management said loans are priced off a rolling medium-term view of gold, that customers usually borrow what they need rather than maximizing collateral value, and that gold mainly affects scrap, not average loan size; they also said scrap margins should normalize if gold stabilizes. Questions also focused on SMG integration and M&A, with management saying the first year will be about moving SMG onto EZCORP systems, Workday, and culture, while the pipeline remains especially strong in Latin America and more U.S. deals are expected to be smaller.